GE update 11/6

GE: long term view. Wave count speaks for it self IMHO. Note that (blue) Primary III was almost exactly 1.382x the length of I, and Primary-V (Purple C1) was almost exactly 1.764x the length of I, measured from wave-II; respectively. That’s rather text book. If all goes to plan then C2 should bottom in the $18-$15 region (50-62% retrace). Thus at current price levels there’s still 10-25% downside risk and thus not a good moment to buy. Wait for the first 5 waves up to develop, then buy the retrace. That’s the best strategy. Questions? Contact me 🙂

GE

ps: this stock also shows that long-term buy and hold is not the ideal strategy. Why? It all depends on when you bought it. Since most never buy the lows but often somewhere in between the top and low (if not closer to the top than the bottom, it follows that if you’d bought this stock 20 years ago (1997), which is a very long hold btw, you’d be up 200%, but if you’d bought it 2 years later (1999) you’d be up 0% (excluding dividends). Thus 2 years can really make a difference… And you’d have been giving up all your gains twice and go in between with a 50-80% hair cut… That’s not proper investing, but buy-hold-and-hope. Why hope? Because remember that most companies are not around for ever… Just check this link to see how the DJIA has changed since 1834…

https://en.wikipedia.org/wiki/Historical_components_of_the_Dow_Jones_Industrial_Average